The leaders of Iran are feeling the economic pressure exerted by the Trump administration:
The critics of President Trump’s Iran policy have been proven wrong: the US sanctions are imposing significant pressure on the ruling mullahs of Iran and the ability to fund their terror groups.
Before the US Department of Treasury leveled secondary sanctions against Iran’s oil and gas sectors, Tehran was exporting over two million barrel a day of oil. Currently, Tehran’s oil export has gone down to less than 200,000 barrel a day, which represents a decline of roughly 90% in Iran’s oil exports.
…Speaking in the city of Kerman on November 12, Iranian President Hassan Rouhani acknowledged for the first time that “Iran is experiencing one of its hardest years since the 1979 Islamic revolution” and that “the country’s situation is not normal.”
Rouhani also complained: “Although we have some other incomes, the only revenue that can keep the country going is the oil money. We have never had so many problems in selling oil.”…
Thanks to the US policy of “maximum pressure,” the Islamic Republic’s overall economy has taken a major beating as well. Lately, the International Monetary Fund (IMF) has again adjusted its forecast for Iran’s economy and pointed out that Iran’s economy is expected to shrink by 9.5% rather than 6% by the end of 2019.
One of the reasons behind IMF’s gloomy picture of Iran’s economy is linked to the Trump administration’s decision not to extend its waiver for Iran’s eight biggest oil buyers; China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea.
This is, of course, in contrast to the policies of the Obama administration.
You may have heard about increasing demonstrations in Iran recently, and a crackdown by authorities that has left over 100 people dead. There is a connection:
The deadly drama playing out in Iran since last Friday, leaving more than 100 protesters dead, shows three things. Tehran is increasingly in desperate economic straits, in part because of intense U.S. sanctions; Iranian popular discontent with the regime’s economic mismanagement seems to have reached a breaking point; and the regime is more frightened of popular unrest than at any time in recent years.
The latest explosion of popular protest in Iran began on Friday after the government rescinded fuel subsidies, which essentially tripled the price of gasoline—a painful blow to millions of ordinary Iranians already struggling to survive a debased currency, high unemployment, and a shrinking economy. But the demonstrations that began over fuel subsidies quickly became a sweeping, nationwide protest against the Iranian regime itself, with outbreaks in dozens of cities in every Iranian province, targeting especially government buildings such as police stations and state-owned banks.
The government’s response has been much more brutal than in previous outbreaks of protest, such as in 2017-2018, including a near-total shutdown of the internet and unrestrained use of violence by security forces. Groups including Amnesty International have documented at least 106 deaths during the protests, as regime security forces have used live ammunition to target demonstrators. The brutal crackdown is both evidence of the regime’s desperation at its own inability to sway popular opinion and a result of watching weeks of similar deadly protests (also directed against Iran) in Iraq and Lebanon…
… Since U.S. President Donald Trump reimposed sweeping sanctions on Iran’s economy, including the ban on oil sales, Iran’s economy has been in a free fall.
Is there any chance the government of Iran could fall? A regime willing to kill demonstrators is demonstrating both power and weakness. Ruthless measures can reach a point of diminishing returns if the number of protestors becomes huge, and a particular turning point tends to be if and when the security forces of police and military decide to turn on the regime and side with the demonstrators. Then all bets are off.
It doesn’t seem that Iran is anywhere near that point. But when it happens, it can happen suddenly and unexpectedly.
